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Situation analysis
Mayaderm is a technologically sound product. It has great research backing. The
product was primarily created to cure difficult cases of ulcer. However, over time new
uses of the ointment in treating bedsores, fissures, major and minor burns, among
other skin ailments, were identified. Hence, Mayaderm was promoted to be a multipurpose herbal cream with unique properties.
The target customer segment for Mayaderm is people suffering from skin ailments for
which prevailing treatment is ineffective and those who would use skin creams for
minor ailments in their household.
Initially, Mayaderm was priced at Rs 70 for a 25-gram tube. The initial distribution
infrastructure involved 23 distributors and a stockist. 15 medical representatives and 2
area managers were recruited to promote the product in Gujarat. This distribution
network seemed adequate considering the fact that Mayaderm was not promoted
nationally yet. However, for reasons unknown, all the medical representatives
resigned from the company and the consequent sales of the product depended on
word-of-mouth publicity based on past effectiveness and goodwill built by Dr. Shah
within the medical fraternity. The distribution of the product was consequently
assigned to a single established stockist of pharmaceutical products in Gujarat. This
highlights the problem of an ineffective distribution network for Mayaderm.
In terms of competition, herbal and chemical formulations for treating general skin
disorders by established pharmaceutical companies like G D Pharmaceuticals and
Vicco Laboratories Limited are probable competitors. Companies like Paras
Pharmaceuticals limited that focus on unique skin conditions can also be considered a
competition. However, considering the unique properties of Mayaderm and its
effectiveness on varied skin ailments, there is not a direct competing product in the
market.
Problem statement
Mayaderm should get at least 30 percent net margin after meeting all costs.